Abstract The article asks whether the exercising of NATO membership option is justified for Finland and Sweden in light their geopolitical state after Russia’s attack on Ukraine. It was Gallup democracy, which launched political moves toward membership. In both countries, majority people turned to favor within 2–3 months. activated first. fast catching up with Finnish process. theory pricing em...

This paper discusses a novel approach to elicit people’s preferences for public goods, namely the life satisfaction approach. Reported subjective well-being data are used to directly evaluate utility consequences of public goods. The strengths of this approach are compared to traditional approaches and identification issues are addressed. Moreover, it is applied to panel data to estimate utilit...

Does Military Draft Discourage Enrollment in Higher Education? Evidence from OECD Countries Using data from 1960-2000 for OECD countries, we analyze the impact of compulsory military service on the demand for higher education, measured by students enrolled in tertiary education as a share of the working-age population. Based on a theoretical model, we hypothesize that military draft has a negat...

This paper analyzes a situation in which multiple targets are exposed to a potential terrorist threat. The probability of an attack is determined endogenously in a game theoretic model. Assuming identical targets, the first-best policy requires that the investment in deterrence should be equalized across all targets. As each target tries to divert an attack to others, the symmetric equilibrium ...

Consideration of anti-terrorism policy has focused almost exclusively on deterrence that seeks to fend off terrorism by raising the costs of undertaking terrorist acts. This paper suggests an alternative approach to anti-terrorism policy that is based on reducing the expected benefits of undertaking terrorist acts to prospective terrorists rather than raising the costs of doing so. Specifically...

In the contest-theoretic literature on the attack and defense of networks of targets the focus has primarily been on pure-strategy equilibria. In a prominent class of these models, we show that for much of the parameter space examined pure-strategy equilibria do not exist. Therefore, all such “characterizations” of the pure-strategy equilibria over these parameter configurations are invalid. On...

What is the likelihood that the U.S. will experience a devastating catastrophic event over the next few decades – something that would substantially reduce the capital stock, GDP and wealth? What does the possibility of such an event imply for the behavior of economic variables such as investment, interest rates, and equity prices? And how much should society be willing to pay to reduce the pro...